USDA Loans

What is a USDA Loan?

United States Department of Agriculture determined that rural communities with homeowners flourished more than rural communities with renters. Mortgages insured by USDA are an excellent option for first-time homeowners because of zero down payment and low mortgage insurance. With all loans, credit score is important, but USDA has the added ability to offer loans to you even if you have no credit score. It’s important to remember though, that the lower the credit score, the higher the interest you will receive. All USDA loans have mortgage insurance premiums, which protects the lender if you default.

Eligibility

USDA loans are for primary residence and must be a single family home. Many homes in Kailua Kona and across the state have ohana units for extended family or rentals. Homes with ohana units are excluded, so limit your home search accordingly.

Requirements

First time home buyers are those who haven’t purchased a home in the past 3 years.

USDA Advantages

Zero down payment and low mortgage insurance.

Income Limits

USDA loans are designated for median income households. In Hawaii County the income limit for a family of 4 is $95, 900 and for a family of 5-7 is $126,600. In Kauai County the income limit for a family of 4 is $112,900 and a family of 5-7 is $149,050. Call us to at (808) 657-0188 to review your unique situation and we will provide an accurate analysis.

How Can We Help You?

Several new loan programs have emerged allowing you to get a new mortgage with zero down and 3% down payment. Debt to income ratios are very important with USDA loans, so we will discuss your options to deliver the best loan for your needs.

At Trusted Home Loans, we understand that debt to income ratios are very important with USDA loans. Contact us today so we can discuss your options to deliver the best loans for your needs whether you’re in Kailua Kona or located in the state of Hawaii.

Get approved today!